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The rising prices of goods make it hard for low-income families to balance their budgets, especially those with kids. Thus, to help such families, New Jersey is planning to provide some stimulus relief. The child stimulus checks from New Jersey, if approved, would be in the form of a tax credit. Under the program, each eligible child will get a refundable tax credit of up to $500.
Child Stimulus Checks From New Jersey: Who Will Get Them?
On Wednesday, the New Jersey state legislature approved a program that would give up to $500 tax credit to families with young children. This proposal is part of a record $50.6 billion budget, which was approved by the Democrat-controlled New Jersey state legislature during the state's current budget session.
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Under the program, called the New Jersey Child Tax Credit Program, families with income less than $30,000 a year will get a refundable tax credit of up to $500 per year for each child under the age of six.
The amount of tax credit would be reduced by $10 for every $1,000 exceeding the $30,000 with an upper limit of $80,000. A minimum of $300 per child will go to a household with an annual income of up to $80,000.
Republicans criticize the legislation's limited scope as the benefit won't be offered to children over six years. Also, Republicans are critical of the bill's expediency, saying the tax credit won't reach families until the 2024 tax season. Despite the opposition, the proposal passed 31-6 in the Senate and 76-2 in the General Assembly. Now, the legislation sits on Gov. Phil Murphy's desk for final approval.
New Jersey Child Tax Credit Program: Much-Needed Relief
As per an analysis by the Office of Legislative Services, the child stimulus checks from New Jersey could cost the state about $156.3 million. The Office of Legislative Services noted that the program would benefit about 374,000 children under six. Further, the analysis found that at least 180,700 children would be eligible for the full credit of $500 and 99,500 children would get at least $300.
Unlike the federal expanded child tax credit, the child stimulus checks from New Jersey would come automatically to eligible families. The federal expanded child tax credit, which was approved by the Biden administration, expired in December 2021.
'The child tax credit directly provides assistance to families without the necessity of submitting additional applications,' said Assemblywoman Verlina Reynolds-Jackson, one of the bill's main sponsors.
Similar to the federal expanded child tax credit, the child stimulus checks could offer much-needed relief to low-income families. A recent report from the nonprofit group, Child Care Aware of America, noted that the cost of childcare breached the $10,000 mark in 2020.
As per the data from the New Jersey's Health Department, over 14% of children in the state under the age of five lived in poverty. The number increases to almost 25% for Black children and almost 23% for Hispanic children.
Updated on Jul 1, 2022, 10:11 am
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